How the AUD will react to the strength of retailers

Walmart's dominant market position makes it a gauge of retail strength, and James Swerling of Ebury notes that sales are expected to reach 4% higher y/y, healthy but lagging on inflation.

Walmart's weak guidance may be a portend of slowing growth ahead and perhaps a more dovish Fed.

Australian services PMI remains negative, but not negative enough, with Europe looking to become the new stronghold, particularly for services as a mild winter ends. The EURUSD has been seen breaking above 1.10 in the short to medium term.

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